I wonder if this is the real Kel,the one who caused all the commotion when he bailed:
Hi everyone-KEL104852 here,
I thought I would stop by and see how this stock is doing since I got out and if I should get back in. After doing some research on their sec filings I noticed two things that I consider important-1=they continue to dilute the stock (not in itself important, but not disclosing it on their website is) 2= there is a 28% override on the Buck-Snag field. not good!
For those that don't know what an override is let me explain. An oil well is paid out in two parts, an overriding royalty and a working interest. The overriding royalty is paid first and is free of any well costs. A working interest is the remainder of the revenue minus all well costs. Example in this case= 100 bbls of oil from production= 28 bbls belong to the entity owning the override and the other 72 bbls are considered 100% working interest and belong to the parties holding the working interest (these parties are responsible for all costs associated with the well including drilling, production and distribution.
From my experience I would say that normally an override would be 12.5% and in the Buck-Snag field MXXR owns a 42% WORKING INTEREST or in the above example would be only 30.24 bbls not 42 bbls as some on this board suggest. Gas wells are figured the same way. This is my own DD and you should always do your own and only use message boards as a stepping stone to factual information such as SEC reports and company postings. I wish you all the best.
